Legal Question in Tax Law in Illinois

How do I file my class-action award in this case?

In 2006, I joined 12dailypro, an internet autosurf membership program in which people bought and sold advertising credits, with a return of 12% profit on the credits. 12Dailypro stated that the returns were supported by business profits and company investments. However, the SEC shut them down that year, reclassifying the program as a ponzi scheme, precisely because the overwhelming bulk of profits paid were from new members and recurring members. The SEC filed a class-action suit charging fraud; as a result, the members were reclassified as "investors", and their membership fee credits as "investments."

Now in 2009 the class action suit has ended, with investors receiving "a return of capital" of 30% of their initial investment only. As a claimant I received $363. I never classified my initial amount of $1212 on my 2006 tax returns as any investment. However, now that I have received my 30% in 2009, do I go back and amend my 2006-2008 taxes to classify my inital "investment", and report a 70% loss of capital? ...or is there another way to handle this kind of investor class action award on my taxes?

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